Suppose a Production Function Is Q = K^1/2L^1/3 and in the Short

question 27

Multiple Choice

Suppose a production function is q = K^1/2L^1/3 and in the short run capital (K) is fixed at 100.If the wage is $10 and the rental rate on capital is $20,the short run marginal cost is

• A) 1000 + q³
• C) q³
• D) 2q³

Identify factors contributing to variations in productivity and real GDP per person across countries.

Comprehend the concept of productivity and how it is measured.

Recognize the relationship between real GDP per person, standards of living, and economic growth.

Grasp the significance of human capital in economic growth and productivity.

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Definitions:

Variable Expenses

Costs that fluctuate with production volume or business activity levels, such as materials and labor.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent or salaries.

Annual Sales

The total revenue generated from goods or services sold by a company during a fiscal year.

Advertising Budget

The amount of money allocated by a company to spend on advertising campaigns over a specific period.